Long burdened by economic uncertainties, rising costs, and regulatory constrictions, the Middle Eastern and African construction industries have faced their share of challenges, with South Africa experiencing the additional threat of construction mafias.

The survey data underscores the industry’s focus on adopting digital solutions to maintain a competitive edge. © RACA Journal
Yet the tides are turning, and a newfound sense of confidence, buoyed by strategic investments in infrastructure, technology, and sustainability, is setting the stage for a transformative year.
This promising outlook is reinforced by RIB Software’s 2025 Industry Outlook Survey, which reveals a wave of optimism in the construction sector. With 97.6% of respondents anticipating revenue growth and a robust project pipeline, the construction industry is poised to capitalise on new opportunities in the coming year.
Optimism fuels growth projections
Peter Damhuis, Vice President of RIB Software, explains that the survey demonstrates the remarkable resilience and adaptability of the construction sector, adding that beyond optimism, there is a focused commitment to leveraging technology and innovation to navigate challenges and seize growth opportunities.
“It’s fantastic to see such optimism from our 251 survey respondents, with 98% predicting increased revenue and project activity in 2025,” says Damhuis.
The building sector, representing 28% of respondents, and civil contracting at 26%, are leading the charge. General contractors, accounting for 18%, also show strong confidence. Here, the majority of participants project a revenue increase of at least 5%, with nearly 39% anticipating growth exceeding 15%. The optimism extends to project pipelines, with over 97% expecting expansion.
Drivers behind the surge
The surge in growth is fueled by several factors. Increased government-led infrastructure spending, identified by 30.6% of respondents, creates substantial opportunities for civil and general contractors, while expanded private sector work, cited by 42.6% of respondents, pushes the building sector to scale up its operations.
Furthermore, private funding via Public-Private Partnerships (PPPs) accelerates project launches and enables innovative solutions. Sustainability also plays a key role, with 40.6% of respondents embedding environmentally conscious practices into their strategies to align with global environmental goals.
Overcoming industry challenges
Despite this optimism, the industry continues to face challenges such as attracting and retaining qualified individuals. These were a concern for 31% of respondents, and rising input costs were noted by 34.2% of respondents.
“Apart from the majority of respondents suggesting that two of the biggest risks are rising costs due to global unrest and construction mafias in South Africa, 15% of participants highlighted regulatory complexities and power-generation constraints as risks,” explains Damhuis. “However, more than 58% of respondents highlighted digital transformation as the top of their strategic agendas for 2025 – a key initiative to address hurdles while leveraging advanced technologies to mitigate risks and enhance efficiency.”
The role of technology and sustainability
The survey data underscores the industry’s focus on adopting digital solutions to maintain a competitive edge. A significant proportion of respondents plan to use BIM (Building Information Modelling) for enhanced design and cost estimations, falling into the top 10 priorities for deployment in 2025.
Cloud and real-time collaboration technologies are seen as essential tools for 2025, driving greater integration and efficiency across projects. Moreover, digital transformation strategies, selected by 58.1% of respondents, are shaping the future of construction practices. Sustainability efforts are further reinforced by 137 companies implementing carbon-reduction strategies, with 74% reporting progress in reducing their carbon footprints over the past year.
A promising year ahead
The survey reveals that firms are planning significant investments in technology and expansion. About 61.3% of respondents expect to increase their IT budgets for 2025, emphasising a commitment to innovation. The diversification of offerings and geographic expansion are strategic initiatives for 46.6% and 35.8% of respondents, respectively. The industry is also prioritising safety, with 35.4% of participants highlighting it as a critical focus area.
“With technology, innovation, and collaboration redefining the construction landscape, the construction industry is set to experience a transformative 2025. The convergence of strategic investments, a focus on sustainability, and the adoption of cutting-edge digital tools signal a year in which the sector will not only recover but thrive. Firms that embrace these opportunities are positioned to lead the way in shaping the future of construction, making 2025 a milestone year for growth and progress,” concludes Damhuis.